SAN JOSE, Calif., February 19, 1996 - ISD (Information Storage Devices, Inc.), (NASDAQ: ISDI) today announced it has successfully demonstrated 4X nonvolatile digital storage using the company's proprietary and patented multilevel storage technology. ISD demonstrated that it is possible to store four bits of digital data per single memory cell, equal to 16 distinct voltage levels (24). Traditional digital memory is only capable of storing one bit per transistor cell. The advantage of this technological advancement could lead to substantial cost savings, given that 75 percent fewer memory cells are required to store a given amount of information. "The efficiency and cost implications of this technology are significant," said David Angel, ISD's president and CEO. "This development potentially opens up new markets and lower cost points than we previously thought possible, which could provide ISD with a significant competitive advantage in specific digital markets." The ISD multilevel technology demonstrated is of significance to products storing digital data which are sensitive to minimizing chip real estate, power consumption and cost. For example, cellular phones, PDAs, fax machines, printers, solid state film, pagers and PCMCIA cards are expected to be ideal targets for this technology.

ISD, which has shipped over 25 million ICs using multilevel storage of analog signals for voice record and playback applications, is now considering a new family of digital data storage chips. While ISD is contemplating a stand-alone family of such products, the company is also discussing joint technology and product development with potential partners. "ISD has always been confident that this technology vision could be achieved and we are now proud to be demonstrating it," said Michael Geilhufe, vice president and a founder of ISD. "This significant breakthrough would require no changes to ISD's process technology and manufacturing." ISD designs, develops and markets integrated circuit solutions for voice applications in the consumer, communications and industrial markets. The company is located at 2045 Hamilton Avenue, San Jose, Calif., 95125. Telephone: (408) 369-2400. Fax: (408) 369-2422. World Wide Web home page: http://www.isd.com.

Note: Product and company names used here are trademarks or registered trademarks of their respective companies.

ISD, a leading supplier of semiconductor voice record and playback solutions, provides essential products to the communications marketplace using its proprietary multilevel storage and related technologies. ISD is headquartered at 2045 Hamilton Avenue, San Jose, California 95125, USA. Telephone: (408) 369-2400. Fax: (408) 369-2422. World Wide Web home page: http://www.isd.com.

This press release contains forward-looking statements regarding features and performance of future products and the benefits and future applications for high density multi-level digital memory technology. Actual results could differ materially as a result of a number of factors including the following: cyclical nature of the markets and demand for the Company’s products; the timing of new product announcements; the ability of the Company’s customers to develop and market products incorporating the new high density multi-level digital memory circuits; availability of foundry capacity and raw materials; fluctuations in manufacturing yields; competitive pricing pressures; the ability of the Company to develop or acquire needed technology, assimilate personnel and pursue new markets; increased research and development expenses; economic conditions generally or in various geographic areas; and the risk factors listed from time to time in the Company’s SEC reports, including but not limited to its report on Form 10-K for the year ended December 31, 1996.